THEORIES AND APPROACHES TO
MANAGEMENT
BY: TARIMO
SEPTEMBER 25, 2017
Learning outcomes
• State the theories of management
• Apply the management theories
• Describe the management approaches
Management theories
• Theories are applied to boost productivity and ensure quality
• Theories are used by managers to implement the strategies within the
organization
• More than one management theory can be applied in an organization
depending on the objectives and the goal to be achieved
The management theories have evolved and due to this evolution they are
categorized into two
• Historical management theories
• Contemporary management theories
Historical management theories
• Scientific Management Theory (by Fredrick Taylor in1890)
• Bureaucratic Management Theory (by Max Weber in 1930)
• Human Relations Movement (George Elton Mayo in the 1930s )
• Theory X and Y (Dough McGregory 1960)
Scientific management theory
• It considers that a man needs constant supervision and direction
• It is centered on task specifications and task measurement of the organization
tasks
• Advocates on task standardization
• Employees should know their task
• It harnesses the principle of “reward and punish”
Bureaucratic Management Theory
• This theory focuses on organizational structure
• An organization is viewed as a type of social relationship that has regulations
enforced
• Establishing line of authority and control within the organization
• It emphasizes on standard operating procedures within the organization
• Few top people making decisions and a chain of middle managers and lower
level people below them carrying out specific functions
• Orders come from top down (Top-bottom approach)
• Rules rather than people form the basis of an organization
Characteristics of Bureaucratic theory
• Fixed division of labor and specialization
• Hierarchy of offices
• Rational-legal authority
• Creation of rules to govern performance
• Separation of personal from official property and rights
• Selection based on qualifications
Human Relations Movement
• It is also referred to as participative management
• Advocates more on in the individual and specific abilities in the
organization
• It centers on the notion that people are an integral part of the
organization success
• It aligns the needs of workers and that of the organization (
mutual dependent)
• The basis of evolution of HR departments in the work places.
Theory X and Y
• Theory X, also called traditional management is based on the idea that employees are lazy
and dislike work and need a mixture of financial inducements and threat of loss of their
job to make them work
• Theory X also assumes that most people are basically immature, need direction and
control, and are incapable of taking responsibility.
• Theory Y, is based on the idea employees are creative and need to have their potential
unleashed.
• Theory X and Y focus on the behavior of the employee
Contemporary Theories of Management
They are three
• Contingency theory
• System theory
• Chaos theory
Contingency or situational theory
• It emphasizes to take into account all aspects of the current situation.
• Managers should act or make decision on those aspects that are key to the
situation at hand.
• Solve the most pressing problems that are hindrances to development.
• Hence the style of leadership that will be needed will depend on the situation at
hand and the urgency of the needed solution.
System theory
• Helps to understand the organization and whole concept of management science.
• It recognizes all the organizational structures as one and important
• It helps managers to look at the organization more broadly and see how it affects
workers and how workers affect the system
• It has also enabled managers to interpret patterns and events in the workplace
• Characterized by sharing of feedback
Chaos theory
• Theory recognize that change is constant and that
• Not every situation and event can be controlled
• It acknowledges that change is inevitable and is rarely controlled.
• The more the organization grow the more complex and difficult to control it
• Organization will spend more energy to accommodate the level of complexity
• As more energy .is spend more structures are needed to maintain stability, but the growth
continues and changes keep on emerging
Approaches to Management
Three schools of thought for approaches to management
• Classical approach ( F.W Taylor)
• Humanistic approach ( Follet )
• Behavioural Approach ( C. Bernard)
Classical management approach
• Man could be programmed to be as efficient as machines.
• Workers motivated by economic & limited physiological wants, needed constant
direction.
• Each worker should have a clearly defined daily task laid out before him.
• A worker should be given standardized conditions.
• High pay should be tied to successful completion of task
Strength of classical approach
• Provides close supervision
• Outcome driven approach (workers must work and deliver)
• Promote specialization
• The control is highly centralized ( better for the top management)
Weakness of classical approach
• It does not take into account the behavioral and psychological
factors
• It ignores social and environmental factors
Humanistic approach
• It is centered on the motivation and satisfaction of the
employees
• It considers workers as an integral part of the organization
success
• Motivated workers is one of the key to accomplish
organizational goals.
• It emphasizes on the participatory leadership – ideas should be
shared between and among employees and management
• It does not advocate economic incentives as only the means of
motivation
Behavioural approach
• People behave the way they behave for some reason
• Employees' behavior may impact the organization success
• Managers need to identify factors that may affect employees attitude to their
work.
• Managers should apply the knowledge of psychology, sociology and
anthropology
